All Forum Posts by: Arvind Suraj Bhadhya

@Edgar Stanislavsky In my opinion, the issue is not so much that your take is too low, but that the overall spread is too low.  On a deal which requires an investment of $382,000 I would want a profit margin of $75,000 - $100,000.  If a couple of things go wrong, the margin of $50k becomes $32k, at which time this makes no sense at all from your stand-point.

You are right, even if you get it 7% ROI is not good risk-reward. You need to be seeing a minimum of 12%-15% and preferably 20% for as much capital as you put at risk. Tell them to get the house bought for $75,000 less :)

Hope this helps.  Good Luck!